Fremont-based Solyndra’s bankruptcy was both an opportunity for Republicans to dismember the alternative energy industry and a means for Democrats to figure out how to keep energy loan guarantee programs going--but in a way that guarantees the loans won’t fail, according to lawmakers Nov. 17. The House Energy & Commerce Oversight & Investigations Subcommittee grilled Department of Energy secretary Steven Chu under oath on political influences, or lack thereof, in the decision to guarantee a $535 million loan to Solyndra. The committee also inquired into the specifics of how the loan evolved. Lawmakers were particularly concerned about the part of the restructured loan that put the government second in line for any funds available after the bankruptcy. When the government knew Solyndra was in financial trouble, “we had a half-completed factory,” explained Chu. “If we stopped the loan” it would’ve caused immediate bankruptcy. He said the department faced a decision whether to arrange for more funds, including outside equity investors, so the building could continue. If Solyndra declared bankruptcy after the factory was complete, then there would have been an asset to be sold. In refinancing, the investors who were putting in another $75 million into the plant wanted payback under bankruptcy to come first to them, Chu told the subcommittee. While highly unusual, Chu said that counsel advised it was legal. “We were faced with the decision--do you stop giving them money and force them into bankruptcy, or go forward?” Chu said. “I was aware of the risk,” he added. Many panel members questioned the legality of the decision to subordinate the government’s debt, excoriating Chu for the decision. “You’re acting like a venture capitalist,” said Rep. Michael Burgess (R-TX). The political inflammation side of the hearing brought up the deep divide between Democrats and Republicans over government-backed movement toward a non-fossil fuel economy. Exchanges from both sides of the aisle were barbed. “This hearing is about the possible abuse of power,” exclaimed Rep. Marsha Blackburn (R-TN). Was it in the taxpayer interest or in your desire for a green economy?” she added. “The agenda of Republicans is to maintain our addiction to fossil fuel,” Rep. Henry Waxman (D-CA) alleged. “It’s time to come together to make the nation a world leader [in clean economy].” Another tack was on a potential link between the White House and the decision to fund Solyndra. “Why was DOE and the administration so close to Solyndra?” subcommittee chair Rep. Cliff Stearns (R-FL) queried. In response to several questions as to whether the President or anyone in the White House directed him to approve the loan, Chu flatly said “no.”